On January 24, 2026, President Donald Trump threatened to immediately impose 100% tariffs on all Canadian goods entering the United States if Canada finalizes any trade deal with China. In a social media statement, Trump warned that such an agreement would harm U.S. interests, citing concerns over China’s influence, including lowered tariffs on Canadian agriculture and plans to allow 49,000 Chinese electric vehicles into Canada. Prime Minister Mark Carney’s administration denied pursuing a full free trade deal with China and criticized the threat as damaging to fair trade. The move escalates tensions in the vital U.S.-Canada economic relationship, which involves massive bilateral trade in autos, energy, and agriculture. Analysts warn that these tariffs could raise consumer prices, disrupt North American supply chains, and worsen global trade frictions involving the U.S., Canada, and China. Canadian leaders called it a further degradation of the fair trade system.
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